Cardano Price Forecast: Bears aiming for a yearly low of $0.50 as on-chain data show increasing dormant wallet activity
|- Cardano’s price hovers around $0.56 on Wednesday after falling 13% the previous week.
- Token Terminal data shows that ADA’s fee collection has been constantly falling in 2025.
- The technical outlook and on-chain metrics suggest a correction as dormant wallet activity increases.
Cardano (ADA) price hovers around $0.56 on Wednesday after falling 13% the previous week. Token Terminal data shows that ADA’s fee collection has constantly fallen in 2025, indicating lower blockchain usage and activity. The technical outlook and on-chain metrics suggest a correction as dormant wallet activity increases.
Cardano dormant wallet activity rises while netflow turns negative
Santiment’s Age Consumed index projects a bearish outlook for Cardano. The spikes in this index suggest dormant tokens (tokens stored in wallets for a long time) are in motion, and it can be used to spot short-term local tops or bottoms.
In the case of ADA, history shows that the spikes were followed by a fall in Cardano’s price as holders moved their tokens from wallets to exchanges, thereby increasing the selling pressure.
The most recent uptick on Monday was the highest spike since mid-January and also forecasted that ADA was ready for a downtrend.
ADA Age Consumed chart. Source: Santiment
Coinglass’s ADA spot netflow data also gives a negative outlook. The data shows that ADA’s spot netflow has been constantly negative since mid-March, and as of this week, it recorded $21.08 million in outflows.
ADA Spot Inflow/outflow chart. Source: Coinglass
Additionally, Token Terminal data shows that Cardano’s fee generation has fallen considerably from $663,400 in January to $53,000 on April 9. This fee fall indicates lower blockchain usage and activity, which doesn’t bode well with Cardano’s price.
ADA fee generation chart. Source: Token Terminal
Cardano Technical Outlook: ADA bears aim for $0.50 mark
Cardano’s weekly chart shows that ADA extended the decline below the 61.8% Fibonacci retracement (drawn from its August 5 low of $0.27 to the December 3 high of $1.32) at $0.67 and lost 13.23% last week, retesting the February 28 low of $0.58 on Friday. As of this week, ADA bounced slightly after dipping and finding support around $0.51 on Monday. At the time of writing on Wednesday, ADA hovers around $0.56.
If ADA continues its downward momentum, it could extend the decline to test the year-to-date low of $0.50 set on February 3.
The Relative Strength Index (RSI) on the weekly chart reads 44 and points downward, indicating bearish momentum.
ADA/USDT weekly chart
However, if ADA recovers, it could extend the positive move to retest the 50-week Exponential Moving Average (EMA) at $0.66.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.